Home loans are big-ticket loans. The ticket size can range from a few lakhs to a few crores. In other words, home loans involve a hefty amount and therefore, lenders sanction them very carefully. Loan applications from only those individuals meet with approval who meet all the home loan eligibility criteria. Further, lenders release the final loan sanction letter and the loan agreement only after having verified all the documents as well as the property that the borrower wants to buy with the loan money. Before we discuss the home loan verification process in detail, let us look at the documents required for home loans. 

Documents Required for Home Loans

Planning to apply for a home loan any time soon? Make sure to keep the following documents ready with you. 

• Identity proof documents (Aadhar, PAN, Passport, Voter ID, etc.)
• Address proof documents (utility bill, Passport, Ration Card, Voter ID, PAN, Aadhar, etc.)
• KYC documents (Aadhar, PAN, Passport)
• Last 3- or 6-months’ bank account statement, depending on whether you are salaried or self-employed and the requirements of the lender you have applied to
• Form 16 or the latest salary slips in the case of salaried individuals
• Profit and Loss Statement and financial statements of one’s business
• Proof of business vintage in the case of self-employed individuals 
• All property documents 

Please note that these are generic document requirements. Your lender may ask you for additional documents as well. So, talk to your lender and get clarity in advance on the documents you will need during the home loan application process. 

Also check the other documents required for home loan.

Let us now move to the home loan verification process. 

What Does the Home Loan Verification Process Entail? 

So, here is what the home loan verification process entails: 

1. After you have applied for a home loan, your lender will ask you to submit the documents mentioned above. They may ask you for additional documents as well. After you have submitted these documents, your lender will hire a legal expert to go through these documents and verify their authenticity. Your lender will do this to make sure you are not faking information to enhance your home loan eligibility. If the legal expert finds that you have faked documents or lied anywhere, your application will be rejected immediately.
2. After you pass the document verification stage, your lender will hire legal and technical experts to check the property you are investing in. The legal expert will check the property paperwork to make sure the property is not mired in any kind of legal hassles or issues that may create trouble in future. The technical expert, on the other hand, will visit the property and check if it’s being constructed in line with the rules and regulations laid down by the local authorities. They will also check and make sure the construction is sturdy and reliable. It is only after your lender gets a nod from their legal and technical expert that will they release the final loan sanction letter. 

The document and home verification steps are an integral part of the home loan process and failing to pass these steps can make it very difficult for a loan applicant to get approved for a home loan. This is also the reason why home loan borrowers are advised against lying in their home loan application form.